| 1 | 1 | | 85R5032 JAM-F |
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| 2 | 2 | | By: Nevárez H.B. No. 1168 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the mineral use of land that has been subdivided for |
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| 8 | 8 | | energy development resulting in the generation of electricity. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 92.002, Natural Resources Code, is |
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| 11 | 11 | | amended by adding Subdivision (5) to read as follows: |
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| 12 | 12 | | (5) "Qualified subdivision for energy development" |
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| 13 | 13 | | means a tract of land of not more than 640 acres that: |
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| 14 | 14 | | (A) has been subdivided in a manner authorized by |
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| 15 | 15 | | law by the surface owners for energy development resulting in the |
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| 16 | 16 | | generation of electricity by a plant or industrial facility; and |
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| 17 | 17 | | (B) contains one or more operations sites within |
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| 18 | 18 | | the tract and provisions for road and pipeline easements to allow |
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| 19 | 19 | | use of the operations sites. |
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| 20 | 20 | | SECTION 2. Section 92.003, Natural Resources Code, is |
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| 21 | 21 | | amended to read as follows: |
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| 22 | 22 | | Sec. 92.003. CREATION OF SUBDIVISION. The surface owners |
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| 23 | 23 | | of a parcel of land may create a qualified subdivision or a |
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| 24 | 24 | | qualified subdivision for energy development on the land if a plat |
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| 25 | 25 | | of the subdivision has been approved by the railroad commission and |
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| 26 | 26 | | filed with the clerk of the county in which the subdivision is to be |
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| 27 | 27 | | located. |
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| 28 | 28 | | SECTION 3. Section 92.004(a), Natural Resources Code, is |
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| 29 | 29 | | amended to read as follows: |
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| 30 | 30 | | (a) The railroad commission shall adopt rules governing the |
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| 31 | 31 | | contents of an application for a qualified subdivision or a |
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| 32 | 32 | | qualified subdivision for energy development. An application must |
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| 33 | 33 | | be accompanied by a plat of the subdivision showing the applicant's |
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| 34 | 34 | | proposed location of operations sites and road and pipeline |
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| 35 | 35 | | easements. |
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| 36 | 36 | | SECTION 4. Section 92.005, Natural Resources Code, is |
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| 37 | 37 | | amended to read as follows: |
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| 38 | 38 | | Sec. 92.005. USE OF OPERATIONS SITE. (a) An owner of a |
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| 39 | 39 | | possessory mineral interest within a qualified subdivision or a |
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| 40 | 40 | | qualified subdivision for energy development may use only the |
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| 41 | 41 | | surface contained in designated operations sites for exploration, |
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| 42 | 42 | | development, and production of minerals and the designated |
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| 43 | 43 | | easements only as necessary to adequately use the operations sites. |
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| 44 | 44 | | (b) The owner of the possessory mineral interest may drill |
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| 45 | 45 | | wells or extend well bores from an operations site or from a site |
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| 46 | 46 | | outside of the qualified subdivision or qualified subdivision for |
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| 47 | 47 | | energy development under the surface of other parts of the |
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| 48 | 48 | | qualified subdivision or qualified subdivision for energy |
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| 49 | 49 | | development if the operations do not unreasonably interfere with |
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| 50 | 50 | | the use of the surface of the qualified subdivision or qualified |
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| 51 | 51 | | subdivision for energy development outside the operations site. |
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| 52 | 52 | | (c) This section ceases to apply to a qualified subdivision |
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| 53 | 53 | | if, by the third anniversary of the date on which the order of the |
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| 54 | 54 | | commission becomes final: |
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| 55 | 55 | | (1) the surface owner has not commenced actual |
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| 56 | 56 | | construction of roads or utilities within the qualified |
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| 57 | 57 | | subdivision; and |
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| 58 | 58 | | (2) a lot within the qualified subdivision has not |
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| 59 | 59 | | been sold to a third party. |
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| 60 | 60 | | (d) This section ceases to apply to a qualified subdivision |
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| 61 | 61 | | for energy development if, by the third anniversary of the date on |
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| 62 | 62 | | which the order of the commission becomes final, the surface owner |
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| 63 | 63 | | has not commenced actual construction of roads or facilities for |
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| 64 | 64 | | use in generating electricity within the qualified subdivision for |
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| 65 | 65 | | energy development. |
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| 66 | 66 | | SECTION 5. Section 92.006, Natural Resources Code, is |
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| 67 | 67 | | amended to read as follows: |
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| 68 | 68 | | Sec. 92.006. AMENDMENT, REPLAT, OR ABANDONMENT. All or any |
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| 69 | 69 | | portion of a qualified subdivision or qualified subdivision for |
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| 70 | 70 | | energy development may be amended, replatted, or abandoned by the |
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| 71 | 71 | | surface owner. An amendment or replat, however, may not alter, |
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| 72 | 72 | | diminish, or impair the usefulness of an operations site or |
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| 73 | 73 | | appurtenant road or pipeline easement unless the amendment or |
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| 74 | 74 | | replat is approved by the commission in accordance with Section |
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| 75 | 75 | | 92.003 [of this code]. |
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| 76 | 76 | | SECTION 6. Not later than January 1, 2018, the Railroad |
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| 77 | 77 | | Commission of Texas shall adopt rules necessary to implement |
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| 78 | 78 | | Chapter 92, Natural Resources Code, as amended by this Act. |
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| 79 | 79 | | SECTION 7. This Act takes effect immediately if it receives |
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| 80 | 80 | | a vote of two-thirds of all the members elected to each house, as |
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| 81 | 81 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 82 | 82 | | Act does not receive the vote necessary for immediate effect, this |
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| 83 | 83 | | Act takes effect September 1, 2017. |
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